SSA cost of living adjustment - COLA
If everything goes as expected, Social Security recipients should receive a 2.5% increase in next year's cost-of-living adjustment, or COLA.
That number may be disappointing in itself, even more so if Social Security Administration (SSA) automatically deducts Medicare Part B premiums from beneficiaries' checks if they're enrolled in the government-sponsored health insurance program.
The Medicare Board of Trustees estimates an increase in the monthly Part B premium for most households from $174.70 to $185.00. That's a 5.9% increase in costs, much more than the 2.5% estimated COLA.
The average Social Security beneficiary currently receives $1,872 in monthly retirement benefits. A 2.5% increase to that average is $46.80 per month, but approximately $10.30 of that will go toward paying higher Medicare premiums. As a result, the average beneficiary will only receive a boost of about 2.2% to their current checks.
Good luck fellow retirees. And to think we are being told that we are better off today than four years ago.